Ready reckoner rates likely to go up 4-5%

The hike, effective April 1, is expected to range 3-10%, with higher revisions likely in parts of the Mumbai Metropolitan Region (MMR), Nashik and other cities witnessing major infrastructure projects such as the Shaktipeeth corridor and extension of the Samruddhi Expressway, officials said

Mumbai: Even as the real estate sector is likely to be impacted by the war in west Asia, the state government has decided to increase ready reckoner (RR) rates by 4-5% on average for the 2026–27 financial year, officials aware of the matter told Hindustan Times.

Ready reckoner rates likely to go up 4-5%

“The office of the Inspector General of Stamp and Registration is finalising the proposal and it is expected to be announced on March 31,” a senior revenue department official said, requesting anonymity.

The hike, effective April 1, is expected to range 3-10%, with higher revisions likely in parts of the Mumbai Metropolitan Region (MMR), Nashik and other cities witnessing major infrastructure projects such as the Shaktipeeth corridor and extension of the Samruddhi Expressway, officials said.

Raajesh Prajapati, committee member of the CREDAI MCHI, an apex body of real estate developers in the MMR, said the hike would discourage prospective home owners from buying property.

“Calculation of premium FSI (floor space index), ancillary FSI, fungible FSI etc are based on the RR values. The more RR rates are hiked, the more property goes out of reach of home buyers. Costs are rising and every market, including metals and the sensex, is falling. So it is very likely that fewer people opt to buy a home in this warlike scenario,” Prajapati said.

RR rates are minimum prices set by the state government for property transactions, ensuring taxes and stamp duty are paid on a fair value. The rates are revised annually based on transaction values of registered properties. They vary across regions, depending on factors such as location and administrative divisions. In cities like Mumbai, rates are often fixed at the ward or sub-ward level, while in other parts of the state, tehsils serve as the basic unit for determining rates.

For the coming fiscal year, though the government was initially apprehensive about the potential adverse impact of the conflict in west Asia on the real estate market, it has now decided to proceed with the annual revision, the senior revenue department official quoted earlier said.

Another Mantralaya official said the government was divided over the decision, given concerns about a possible slowdown in the real estate sector.

“Chief Minister Devendra Fadnavis, who also heads the finance department, had expressed reservations about increasing RR rates under current conditions. However, the revenue department brought to the notice the widening gap between market rates and RR rates in several cities, along with potential revenue losses, showing the need for a revision. Accordingly, the chief minister has approved a reasonable hike for FY 2026–27,” the Mantralaya official said.

According to revenue department officials, the hike will be broadly in line with last year’s revision.

In FY 2025–26, the overall average hike in RR rates was 3.89%. Areas under municipal corporations saw an average hike of 5.95%, while Mumbai recorded a 3.39% increase, the second lowest after Nanded, and Solapur saw the highest hike at 10.17%.

This year, areas undergoing rapid urbanisation are likely to see a steep increase in RR rates, officials said.

“Ahead of the Kumbh Mela, multiple infrastructure projects are in the pipeline in Nashik, and land acquisitions and registrations have increased in recent months. Similarly, land transactions in Raigad, Thane and Palghar districts have picked up due to announcements of airports, data centres and growth hubs. RR rates for these areas are likely to be hiked significantly. Some cities in western Maharashtra and Vidarbha are also expected to witness sizable hikes in RR rates,” the revenue department official said.

The revenue department expects to mobilise at least ₹3,000 crore from the revised RR rates for FY 2026–27. “The stamp duty and registration collection target for the fiscal is an ambitious ₹68,600 crore, and the RR rate hike is expected to contribute towards achieving it,” the official noted.